(This article was originally published in NextIdea, our weekly newsletter on side hustles and pursuing financial independence. Sign up for it using the box below.)
Retirement pessimism is one of the biggest drivers of the financial independence movement — and it’s a reason side hustle energy is everywhere these days.
The negative vibes are backed up by data. Half of U.S. households won’t be able to maintain their standard of living in retirement, according to a whitepaper from the Boston College Center for Retirement Research. And more than 50% of Americans say the COVID-19 pandemic has increased concerns about their ability to achieve financial security in retirement, according to research from the National Institute on Retirement Security. Add to this a student loan debt crisis, sky-high housing costs, and persistent inflation, and you have many Americans seeking out creative ways to make ends meet.
About 40% of Americans now have a side hustle, up from 34% in December 2020, according to year-over-year surveys conducted by Zapier, a marketing automation company. Most of these income streams fall into one of three categories:
- The information economy: swapping knowledge for dollars.
- The gig economy: swapping time for dollars.
- The sublet economy: loaning out assets for dollars.
Each approach has its own pros, cons, and barriers of entry. But chances are there’s a side hustle or income stream that would be a perfect fit for your unique circumstances.
Many Side Hustle Ideas Require Time and Space
That’s why side hustle expert and NextAdvisor featured contributor Daniella Flores believes seeking out a remote job is one of the best decisions you can make if a portfolio career is in your future.
“You and Beyoncé don’t have the same 24 hours a day to work with,” says Flores. “Her time and your time are different. Your life and her life are different.” According to Flores, remote work can jumpstart your FI journey because it gives you the mental space you need to explore other streams of income and see what works.
Read Flores’s tips on how to find the best remote opportunities in the latest installment of their series “From Side Hustle to Second Salary” here:
Everyone’s financial independence journey is unique. Dust off your calculator, run some numbers on what you need to actually achieve your goals, and start taking action today to set yourself up for a better tomorrow.